(For a live blog on European stocks, type LIVE/ in an Eikonnews window)
* FTSE 100 up 0.3 pct, mid caps gain 0.1 pct
* Prudential jumps after insurer announces demerger
* Morrison's shares reverse course after results
* Dignity, Hikma power mid caps
By Kit Rees
The blue chip FTSE 100 index was up 0.3 percent at7,157.09 points by 1001 GMT, recovering some losses from theprevious session.
Insurer Prudential was the top gainer, its sharesrising more than 4 percent after it said it would demerge its
It said it planned to demerge M&G Prudential into a separatecompany with a premium listing on the London Stock Exchange.
"A demerger driven by geography is one which makescommercial and strategic sense," Richard Hunter, head of marketsat Interactive Investor, said.
Mining stocks provided the biggest boost to the FTSE, thanksto some solid industrial production data from
Shares in Glencore, Rio Tinto, AngloAmerican, BHP Billiton and
Results were also in focus. Despite an early rise, shares inMorrison's gave up gains to trade 0.7 percent lowerafter the supermarket gave a full-year update.
While Morrison's beat forecasts and announced a specialdividend, analysts voiced concerns over the sustainability ofthe grocer's growth, while others were disappointed that thedividend was a one-off.
Morrison's shares are up 2 percent so far this year in whatis a tough environment for food retailers due to competition inpricing and online.
"The market has not been buying into the group's recent runof form," Neil Wilson, senior market analyst at ETX Capital,said.
"There is a sense that this kind of growth will be difficultto maintain, but this has been the argument for some time andhas continually been wrong," Wilson added.
Outside of the blue chips, shares in funeral servicesprovider Dignity surged more than 15 percent, puttingthe stock on track for its biggest one-day gain since listing in2004 after reporting full-year results.
Dignity's shares are still down more than 45 percent thisyear on the back of concerns around a price war.
Hikma was another big mid cap gainer, jumping 14percent after the drugmaker's full-year profit and revenue metanalyst expectations.
The mid cap index, however, was up just 0.1 percent.
(Reporting by Kit Rees; Editing by Susan Fenton)